Exclusive: SoundExchange's Simson Ties Royalty To New Artist Airplay
November 19, 2007 at 5:24 AM (PT)
In an exclusive interview with ALL ACCESS, SOUNDEXCHANGE Exec. Director JOHN SIMSON disputed radio's contention that a potential performance royalty rate would seriously impact stations financially and might prompt some underperforming music stations to flip to non-music formats.
"If you look at radio, it’s more profitable than pharmaceutical companies and oil companies, and stations still sell for a lot more money than the original owners paid for them," he said. "Certainly we want to make accommodations for small mom-and-pop stations; we don't want to hurt them, but I don't believe the argument that a lot of radio stations will stop playing music.
"Perhaps what will happen is that this will get radio more engaged in playing newer and emerging artists more often," he continued. "Record companies and new artists would be more likely to make a deal, something like 'We'd love you to play this record, so we'll give you break on performance rates for the first 90 days [the record’s] out.'"
Read the full interview here.